Okay. Good morning. We're going to start our next presentation, which will be from IPG Photonics. The leader in fiber lasers and delighted to introduce the company's Chief Financial Officer, Tim Mammen.

Tim Mammen

Thank you, Jim. Good morning, everyone. Just a couple of words first of all around the Safe Harbor. I'm not going to read this but we will maybe making some forward-looking statements here. Actual results could differ from those forward-looking statements. I also draw your attention to the risk factors outlined in our 10-Q and 10-K.

IPG Photonics is the fiber laser company. We are credited with innovating and commercializing this exciting new technology. The company has grown revenues and earnings spectacularly over the year as the acceptance of fiber technology has accelerated and we have continued to displace older, CO2 and other legacy technologies. There is also a transition happening within the way that people process materials that is benefiting the laser market as a whole.

I think there are three main themes that really characterize IPG's business. The first is the depth of the technology that we have. The second is the scale that we have within our manufacturing. And the third is the diversity of the business.

As I mentioned, lasers are increasingly being used in different types of materials processing and other applications. We have a large available market. The market for laser sources is about $3.8 billion and that is growing at about 7% to 9% per year. Within that, fiber is gaining market share and up until 2010 grew at an average growth rates of about 28%. And last year we estimate grew at a growth rate of about 60%.

The significant competitive advantages the company has mean that we have industry-leading margins and when you couple that with the diversity of the end markets and applications we address, we think that makes the company a compelling investment.

I’ll talk about some of those advantages in the markets as I go through this presentation. As I said the total available market for the company is large. And at the moment we only sell products into the laser source market. The total market for laser sources in 2011 is estimated to be about $3.8 billion. The largest part of that is materials processing, is expected to grow 7% to 9% to more than $5 billion by 2015. Within applications like materials processing, the transition to for example producing automobiles with great fuel efficiency, improved safety using high strength steels, transmissions that have three -- eight automatic speeds rather than three automatic speeds is all benefiting the laser industry. You require lasers to weld and cut those materials and produce compact and lightweight transmissions. There are other industries as well like shipbuilding and locomotive manufacturing that will benefit from that.

The largest part of the available market is represented by materials processing. The market can be divided up into five main categories, the largest of which is cutting and welding, using high power lasers, which is about a billion dollars. Metal marking, which is about $270 million. And fine processing, which is about $400 million. Within this market there are also a couple of future opportunities that we don't really address at the moment. The first of which, in the green segment, marking non-metals. Things like plastics. And we're developing lasers at a different wavelengths to start to address that. And a very significant future opportunity is in micro processing. Where if you can develop a fiber laser that's produced at green or UV, you should see tremendous penetration into those markets and competing with other manufactures with whom we do not directly have product to compete with at the moment.

A lot of the fine processing applications are for example in PC board drilling or in the semiconductor business. And we need to develop lasers -- we actually have in house and R&D UV laser that was recently run at about five watts of output power. We need to get the output power of that UV laser up tremendously. We've also qualified and commercialized our green laser, which is also another good wavelength for fine processing.

Within the materials processing market you can see here the amount of each individual sector that we have penetrated. The highest rate of penetration is in the metal marking, the second two columns along where we have about 60% market share. The largest market, that high power, we've only penetrated about 20% to date. The view is that fiber should get to 60% or 65% of that market. So even at a $1.1 billion, it represents additional revenue opportunity for the company of over $500 million. That market though is also growing. So by the time you get to 2015, the actual opportunity in materials processing will be significantly higher.

We've recently started to sell lasers into fine processing so using our new QCW and medium power lasers for fine welding and fine cutting and drilling of thinner materials, fiber has probably got about 15% market share there but has a very significant runway. And then I'd mention that the other significant areas which we start to address then provide additional headway for the company to grow into are, micro processing and also marking of non-metals.